Northland Power Inc. (“
Northland” or the
“
Company”) (TSX: NPI) today signed an agreement
with Gentari International Renewables Pte. Ltd.
(“
Gentari”) –who have agreed to acquire 49% of
Northland’s ownership interest in the Hai Long offshore wind
project (the “
Project”) located in Taiwan. Upon
closing, the transaction will result in Gentari holding a 29.4%
indirect equity interest in the Project. Northland will remain as
the single largest shareholder of the Project with 30.6% and will
continue to take the lead role in its construction and operation.
This transaction marks a significant milestone
in the development of the Project, allowing Northland to partner
with Gentari through equity consideration of approximately NT $18
billion (CAD $0.8 billion). Final equity consideration remains
subject to closing adjustments in accordance with the terms of the
purchase and sale agreement. Transaction close is expected to occur
following the achievement of financial close of the Project and
remains subject to receipt of customary regulatory approvals and
satisfaction of all closing conditions pursuant to the terms of the
purchase and sale agreement.
The two companies are also seeking to establish
a broader strategic partnership, promoting further growth in
Taiwan’s offshore wind industry, and have signed an Exclusivity
Agreement in this regard. This partnership demonstrates an
opportunity for both companies to share the value creation in the
development of offshore wind, while supporting the global
transition to renewable energy.
Northland has almost 3 GW of gross capacity for
projects that are scheduled for financial close and commencement of
construction within the next two years. Once these projects are
complete, Northland’s total gross capacity will nearly double to
more than 6.5 GW by 2027. Longer-term, the Company continues to
advance its previously disclosed pipeline of over 10 GW
encompassing its identified projects and additional opportunities
to support growth of the Company.
Gentari has an established target of building 30
to 40 GW in renewable energy capacity by 2030 through utility-scale
projects across solar, onshore and offshore wind, and battery
storage, targeting commercial, industrial, and retail
customers.
Mike Crawley, President and Chief Executive
Officer of Northland noted, “Today’s announcement is a significant
milestone for Northland as it represents the first transaction as
part of our partnership model. We are delighted to welcome Gentari
as part of the partnership in the Hai Long offshore wind project
and look forward to developing the broader strategic partnership
in Hai Long and potentially further beyond. This partnership
is further evidence of the global interest in developing renewable
energy projects to aid global decarbonization efforts and the
transition to low carbon economies.”
Mohammad Azhar, Chief Renewables Officer of
Gentari added, “This marks Gentari’s inaugural entry into the
offshore wind segment. The partnership with Northland offers an
opportunity for even greater collaboration in developing other
offshore wind opportunities in Taiwan and beyond.”
ABOUT NORTHLAND POWER
Northland Power is a global power producer
dedicated to helping the clean energy transition by producing
electricity from clean renewable resources. Founded in 1987,
Northland has a long history of developing, building, owning and
operating clean and green power infrastructure assets and is a
global leader in offshore wind. In addition, Northland owns and
manages a diversified generation mix including onshore renewables,
efficient natural gas energy, as well as supplying energy through a
regulated utility.
Headquartered in Toronto, Canada, with global
offices in eight countries, Northland owns or has an economic
interest in 3.0 GW (net 2.6 GW) of operating capacity. The Company
also has a significant inventory of projects in construction and in
various stages of development encompassing over 14 GW of potential
capacity.
Publicly traded since 1997, Northland's common
shares, Series 1, Series 2 and Series 3 preferred shares trade on
the Toronto Stock Exchange under the symbols NPI, NPI.PR.A,
NPI.PR.B and NPI.PR.C, respectively.
ABOUT GENTARI
Gentari is a clean energy company focused on
delivering the integrated net zero solutions required to put
cleaner energy into action today, to transform how we live
tomorrow. Gentari offers lower carbon solutions through three
initial core pillars – Renewable Energy, Hydrogen and Green
Mobility, forming a portfolio of solutions cutting across the
electron value chain to help customers achieve net zero emissions.
In the long term, Gentari aims to be a full suite net zero
solutions provider, creating greater value, connecting businesses,
and making the journey to net zero possible.
FORWARD-LOOKING STATEMENTS
This press release contains certain
forward-looking statements including certain future oriented
financial information that are provided for the purpose of
presenting information about management’s current expectations and
plans. Readers are cautioned that such statements may not be
appropriate for other purposes. Forward-looking statements include
statements that are predictive in nature, depend upon or refer to
future events or conditions, or include words such as “expects,”
“anticipates,” “plans,” “predicts,” “believes,” “estimates,”
“intends,” “targets,” “projects,” “forecasts” or negative versions
thereof and other similar expressions or future or conditional
verbs such as “may,” “will,” “should,” “would” and “could.” These
statements may include, without limitation, statements regarding
Northland’s expectations for guidance, the completion of
construction, attainment of commercial operations which may differ
from expectations stated herein, the potential for future
production from project pipelines, cost and output of development
projects, litigation claims, plans for raising capital, and the
future operations, business, financial condition, financial
results, priorities, ongoing objectives, strategies and outlook of
Northland and its subsidiaries. These statements are based upon
certain material factors or assumptions that were applied in
developing the forward-looking statements, including the design
specifications of development projects, the provisions of contracts
to which Northland or a subsidiary is a party, management’s current
plans and its perception of historical trends, current conditions
and expected future developments, as well as other factors that are
believed to be appropriate in the circumstances. Although these
forward-looking statements are based upon management’s current
reasonable expectations and assumptions, they are subject to
numerous risks and uncertainties. Some of the factors include, but
are not limited to, risks associated with sales contracts,
Northland’s reliance on the performance of its offshore wind
facilities at Gemini, Nordsee One and Deutsche Bucht for
approximately 50% of its Adjusted EBITDA and Free Cash Flow,
counterparty risks, contractual operating performance, variability
of sales from generating facilities powered by intermittent
renewable resources, offshore wind concentration, natural gas and
power market risks, operational risks, recovery of utility
operating costs, Northland’s ability to resolve issues/delays with
the relevant regulatory and/or government authorities, permitting,
construction risks, project development risks, acquisition risks,
financing risks, interest rate and refinancing risks, liquidity
risk, credit rating risk, currency fluctuation risk, variability of
cash flow and potential impact on dividends, taxation, natural
events, environmental risks, health and worker safety risks, market
compliance risk, government regulations and policy risks, utility
rate regulation risks, international activities, reliance on
information technology, labour relations, reputational risk,
insurance risk, risks relating to co-ownership, bribery and
corruption risk, legal contingencies, and the other factors
described in the “Risks Factors” section of Northland’s 2021 Annual
Information Form, which can be found at www.sedar.com under
Northland’s profile and on Northland’s website at
northlandpower.com.
The forward-looking statements contained in this
release are based on assumptions that were considered reasonable as
of the date hereof. Other than as specifically required by law,
Northland undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after such date or to
reflect the occurrence of unanticipated events, whether as a result
of new information, future events or results, or otherwise.
For further information, please
contact:
Mr. Wassem Khalil, Senior Director, Investor
Relations647-288-1019investorrelations@northlandpower.com
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